An Exploration of Nature-Related Financial Risks in Malaysia
Malaysia is one of the world's megadiverse countries, and many of its economic activities are directly or indirectly dependent on nature and its associated ecosystem services.' The Coronavirus (COVID-19) pandemic, with its far-reaching ec...
| Main Authors: | , |
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| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2022
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/099315003142232466/P175462094e4c80c30add50b4ef0fa7301e http://hdl.handle.net/10986/37314 |
| Summary: | Malaysia is one of the world's
megadiverse countries, and many of its economic activities
are directly or indirectly dependent on nature and its
associated ecosystem services.' The Coronavirus
(COVID-19) pandemic, with its far-reaching economic impacts,
is a reminder of the link between human health and planetary
health, given that most human infectious diseases are
transmitted between species. In parallel to climate-related
risks, nature-related risks can lead to economic and
financial losses. Central banks have recently started to
investigate biodiversity and other nature-related impacts
and dependencies of financial systems. The NGFS, of which
Bank Negara Malaysia (BNM) is a member, has recommended
several first actions that could be taken by financial
sector regulators and supervisors to help build the
foundations for more comprehensive measures. BNM, as part of
its mandate to promote monetary and financial stability
conducive to the sustainable growth of the Malaysian
economy, has an interest in understanding nature-related
financial risks to the financial sector. to the financial
sector. A better understanding of nature-related financial
risks is important for prudential supervision to identify
and address any emerging risks in the loan books and
investments of banks and other financial institutions. This
report assesses the exposure of Malaysian banks to sectors
and regions that are highly vulnerable to nature-related
risks. This study makes use of both Malaysian and global data. |
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